KOSPI Closes Higher on Rebound Buying... Optimism Grows on US-China Relations Breeze

Kosdaq Also Ends Higher Despite Early Decline
EcoPro BM Rises 12% on News of Trillion-Won Long-Term Supply Contract with SK Innovation

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] As individuals and institutions led the rise of the KOSPI, an interpretation has emerged that a rebound buying force has entered in response to the recent decline. Meanwhile, expectations for the restoration of US-China relations also seem to have been reflected in the domestic stock market.

On the 10th, the KOSPI closed at 3,125.76, up 0.36% (11.06 points) from the previous day. Although it initially turned downward in early trading and fell to 3,103.38, it rebounded again.

It appears that rebound buying is coming in. Naver (NAVER) and Kakao, which had plunged sharply for two consecutive days until the previous day, rebounded due to the inflow of rebound buying. Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "There is also an assessment that the recent decline due to regulatory concerns is excessive," adding, "The KOSPI and KOSDAQ started mixed today, but foreign net buying inflow in futures expanded again." Foreigners net bought 420 billion KRW in the futures market that day.

The restoration of US-China relations also acted as a factor for the rise. On the 9th (local time), the White House announced that US President Joe Biden and Chinese President Xi Jinping discussed US-China conflict issues through a phone call. It was the first direct conversation between the US and Chinese leaders in seven months since a phone call in February this year. This has led to interpretations that a thawing breeze may blow in the frozen US-China relationship.

Individuals and institutions showed strong buying. Individuals and institutions bought 282.3 billion KRW and 238.7 billion KRW, respectively. Foreigners sold 502.6 billion KRW.

Almost all sectors rose. The textile and apparel sector had the largest increase at 2.03%. This was followed by securities (1.66%), construction (1.64%), electric and gas utilities (1.11%), and telecommunications (0.97%). On the other hand, banking (-3.33%), transportation equipment (-1.39%), medical precision (-1.36%), and machinery (-0.46%) declined.

The top 10 stocks by market capitalization showed mixed results. NAVER had the largest increase at 2.76%, followed by SK Hynix (1.94%), Samsung Biologics (1.31%), Kakao (1.17%), and Samsung SDI (0.13%). Kia (-4.07%), LG Chem (-1.07%), Hyundai Motor (-0.96%), and Celltrion (-0.56%) declined. Samsung Electronics remained flat.

The KOSDAQ closed at 1,037.91, up 0.32% (3.29 points) from the previous day. The KOSDAQ, which started the day higher, turned downward in early trading and fell to 1,026.97 but then rebounded.

Foreigners' buying led to the index rise. Foreigners net bought 117.8 billion KRW. Individuals and institutions net sold 21.5 billion KRW and 81.6 billion KRW, respectively.

Many sector indices showed strength. The general electric and electronics sector had the largest increase at 5.02%, followed by construction (1.83%), textile and apparel (1.55%), IT components (1.46%), and computer services (1.43%). Publishing and media duplication (-0.96%), machinery and equipment (-0.77%), digital content (-0.76%), internet (-0.75%), and transportation equipment and parts (-0.72%) declined.

Most of the top 10 stocks by market capitalization fell. Pearl Abyss had the largest decline at 2.97%, followed by Alteogen (-1.85%), HLB (-1.37%), Celltrion Pharm (-0.85%), Seegene (-0.78%), Celltrion Healthcare (-0.62%), and SK Materials (-0.24%). EcoPro BM (12.00%), L&F (3.37%), and Kakao Games (1.23%) rose. EcoPro BM showed strength on news that it signed a long-term supply contract worth over 10 trillion KRW with SK Innovation the previous day.

This content was produced with the assistance of AI translation services.